VOCATIONAL TRAINERS

CAPITAL GRANT

BUSINESS PLAN

EXECUTIVE SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2
SECTION 1 - BACKGROUND. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
ORGANISATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
SECTION 2 - NEED FOR VOCATIONAL TRAINING . . . . . . . . . . . . . . .	5
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5
BOROUGH WIDE PROBLEMS . . . . . . . . . . . . . . . . . . . . . . . . .	6
TARGET AREA PROBLEMS . . . . . . . . . . . . . . . . . . . . . . . . . . .	8
JOB OPPORTUNITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	13
SECTION 3 - EXISTING ACTIVITIES. . . . . . . . . . . . . . . . . . . . . . . . . . .	14
INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14
PREVIOUS FUNDING AND OCR REGISTRATION. . . . . . . . . .	14
CURRICULUM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	14
PREMISES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	15
EQUIPMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	16
STUDENT INTAKE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	16
SPECIAL NEED STUDENTS . . . . . . . . . . . . . . . . . . . . . . . . . . .	17
CURRICULUM DEVELOPMENT . . . . . . . . . . . . . . . . . . . . . . . .	17
SECTION 4 - PROPERTY PURCHASING. . . . . . . . . . . . . . . . . . . . . . .	18
INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	18
PROPERTY PURCHASING JUSTIFICATION . . . . . . . . . . . . . .	18
PROPERTY LAYOUT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	19
PROPOSED ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	19
SECTION 5 - MEASURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	25
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	25
FINANCIAL CONTROLS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	25
STUDENT PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . . . . .	27
OUTPUTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	28
SECTION 6 - FINANCIAL COMMENTARY. . . . . . . . . . . . . . . . . . . . . . .	29
INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	29
PROPOSED EXPENDITURE . . . . . . . . . . . . . . . . . . . . . . . . . . .	29
PROJECTED INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	31
MULTI PROJECT CONTROLS . . . . . . . . . . . . . . . . . . . . . . . . .	31
CONCLUSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	33
GLOSSARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	34
BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	35
APPENDICES

Current Activities

The purpose of this business plan is to present a case for the acquisition of a vocational training site by Vocational Trainers Vocational Trainers is a registered charity conducting IT (Information Technology) training in North Hackney. Revenue funding for the IT training is provided by the ESF (European Social Fund). Vocational Trainers began vocational training in 1996 and so far has conducted 7 ESF funded projects.

Client Area Problems

North Hackney residents require IT training from Vocational Trainers because they suffer from high unemployment, have large number of dependents per family and experience significant levels of poverty. These problems have been exacerbated by educational under-achievement and ethnic diversity of North Hackney residents. The provision of IT vocational training will enable these people to obtain employment. This is especially as computer based industries have consistently been the main growth sectors in London.

Difficulties in Renting Current Premises

However, the premises currently used by Vocational Trainers for IT training is inadequate to service North Hackney residents because there is a:

- lack of disabled access

- lack of space for specialist equipment for special needs people

- lack of space for centralised computer networking

- lack of security, fire and safety measures

- lack of space for increased student intake

- Any significant investment in these is precluded by the lack of ownership of the current training site by the Vocational Trainers.

Justification for Buying New Premises

To purchase a training site instead of merely renting one is more cost effective. In North Hackney and adjacent areas there are more than twice as many properties available for purchasing than for rent. In addition properties for purchasing are significantly cheaper than rented properties. For 3 bedroom properties it only takes an average of 15 years to purchase one for the cost of its annual rent. Purchasing such a property using a mortgage however, is not on option because of the prolonged 25 year repayment period that has an interest rate which may be subject to sharp and prolonged rises.

Benefits of Buying New Premises

By having a larger premises which is owned and not rented, Vocational Trainers will be able to:

- more than double its annual student intake

- hire 4 additional staff

- add 3 new courses to its curriculum

- upgrade its 5 existing courses

- install disabled access

- purchase more specialist equipment for special needs people

- install safety equipment

- install network facilities to improve productivity

- set up resource facilities for students

- achieve preferred supplier status and other quality standards such as Investors in People

Measuring the Benefits of Buying a New Premises

Vocational Trainers will measure the additional benefits provided by the site. These measures will involve financial controls, student performance and outputs. Financial controls will ensure that budgets are met and daily transactions are handled correctly with a clear audit trial. Student performance entails recording student attendance and taking corrective action when necessary. Outputs pertain to students obtaining recognized diplomas and full-time, permanent employment.

Continuing the Project after the Grant Ends

After the building site is obtained Vocational Trainers will continue its activities using the relevant ESF Objective 2 and 3 funding policy fields. Of the Objective 3 policy fields, the following organisations will provide full match funding:

- Employment Service - Policy Fields 1 and 2

- Business Link - Policy Field 4

- Learning and Skill Council - Policy Field 3

- Association of London Government - Policy Field 5

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